CORRECTING and REPLACING: IncrediMail Signs New Two Year Agreement
with Google

CORRECTION...by IncrediMail Ltd.

December 27, 2010 10:16 AM Eastern Standard Time

TEL AVIV, Israel--(BUSINESS WIRE)--The third graph of the release (beginning with "This agreement also
marks ..." and ending with "... Mandelbaum added.") has been deleted.

The corrected release reads:

INCREDIMAIL SIGNS NEW TWO YEAR AGREEMENT WITH GOOGLE

IncrediMail Ltd. (NASDAQ: MAIL) (www.incredimail-corp.com),
a digital media company that builds downloadable consumer products,
today announced that it has signed a new 2 year agreement with Google.
The new agreement is effective January 1, 2011.

Commenting on the agreement, Mr. Josef Mandelbaum, IncrediMail’s CEO,
said, “We are very pleased and proud to extend our collaboration with
Google, the global search market leader. The new agreement provides the
basis for a more extended relationship and I am looking forward to
working closely with Google to grow our existing business with them and
to find other areas of cooperation that will further strengthen our
partnership.”

“Having positively resolved the issue of whether or not Google would
renew with us, we are now moving full steam ahead with our growth plans
which we believe will establish IncrediMail as a leading digital media
company in the consumer personal productivity category,” concluded Mr.
Mandelbaum.

The terms of the new contract are expected to produce results similar to
those achieved under the previous contract.

About IncrediMail Ltd.

IncrediMail Ltd. (NASDAQ: MAIL) is a digital media company that builds,
acquires and enhances downloadable consumer applications. The company’s
award winning e-mail client product, IncrediMail Premium, is sold
in over 100 countries in 10 different languages. Other products include, HiYo
a graphic add-on to instant messaging software and Magentic, a
wallpaper and screensaver software.

Forward-Looking Statements

This press release contains historical information and
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995 with respect to the business, financial
condition and results of operations of the Company. The words "believe,"
"expect," "intend," "plan," "should" and similar expressions are
intended to identify forward-looking statements. Such statements reflect
the current views, assumptions and expectations of the Company with
respect to future events and are subject to risks and uncertainties.
Many factors could cause the actual results, performance or achievements
of the Company to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements, including, among others, a termination of
the agreement with Google at the end of the first year in accordance
with its terms, changes in the markets in which the Company operates and
in general economic and business conditions, loss of key customers and
unpredictable sales cycles, competitive pressures, market acceptance of
new products, inability to meet efficiency and cost reduction
objectives, changes in business strategy and various other factors, both
referenced and not referenced in this press release. Various risks and
uncertainties may affect the Company and its results of operations, as
described in reports filed by the Company with the Securities and
Exchange Commission from time to time. The Company does not assume any
obligation to update these forward-looking statements.